closing remarks - gpca supply chain conference€¦ · • key trends in gcc industry’s landscape...

Closing remarksDr. Abdulwahab Al-Sadoun

Secretary General, GPCA

• Key Trends in GCC

Industry’s Landscape

• Key conference highlights

• Acknowledgements

• Upcoming GPCA events

Agenda

Getting Ready for the Future: SC 4.0

GCC Petrochemical Exports (1 of 3)

Source: GPCA Analysis, 2019

The GCC built a vibrant petrochemical industry throughout the past four

decades driven by favourable regional and global conditions

0

20

40

60

80

100

120

140

160

180

20061998 201820101982 19941978 1986 20021990 2014

+10.7%

Abundance of natural

resources: Natural Gas,

Phosphate Rock, Sulfur,

Crude Oil

World-class infrastructure

in Industrial Cities

Proximity to the burgeoning

Asian Markets combined

with favorable supply chain

cost (back-hauling)

GCC chemical industry evolution (million tons) Key Enablers



Driven by rising global demand for chemicals, GCC chemicals

export reached 74.8 million tons in 2018, growing by 6.4% per year

2011

67.0

20142008 20102009 20152012 2013 2016 2017 2018 E

40.343.7

54.458.2

62.866.4 67.2 68.6 70.3

74.8+6.4%

Source: UN Comtrade, 2019

Note: 2018 is preliminary

GCC Petrochemical Exports 2008-2018 (million tons)



Asia is the largest export destination for the GCC chemical industry,

representing 63.9% of total export volume in 2018

GCC Petrochemical Exports, 2018 (by destination)

Asia

63.9%

Africa

6.4%

S.

America

6.5%

N.

America

5.7%

EU

10.4%

Source: UN Comtrade, 2019

Note: 2018 is preliminary


Projected Capacity Expansion TrajectoryOrganic Expansion

GCC chemical capacity is expected to increase by 33.6% in the next

decade driven by refining expansion & chemical integration

173.5

220.6231.8

2019 2024 2029

+33.6%

GCC Chemical Capacity Expansion (million tons)

Source: GPCA, 2019

Note: Capacity forecast is based on known projects and products in the

GCC, Incremental capacity is difference between 2029 and 2019

28.2%

17.6%32.2%

5.5%

11.8%

0.9%

Basic3.8%

Commodity PolymersIntermediates

Fertilizers

Performance Polymers

Inorganic chemicals

Value added Chemicals

GCC Chemical Incremental Capacity by Segment

58.3

million tons

6


Projected Capacity Expansion TrajectoryOverseas Expansion

Further, the GCC players are projected to add > 20 Million Tons of

overseas capacity by 2027, the bulk of which will take place in Asia

GCC Overseas Capacity, 2007-2027

(million tons)

GCC Overseas Production Capacity by Region

(million tons)

18.7

2017 2027

38.7

CAGR

7.6%

59%

24%

2027

49%

27%

12%

29%

2017

18.7 MT 38.7 MT

Asia North America Europe


Expansion vs. Current Port Infrastructure

Source: Drewry Maritime Research

To cater for aggressive expansion plan, the GCC States is improving

logistics and SC by building & expanding 30 major ports

Logistics bottlenecks

• Persistent logistics bottlenecks in GCC ports,

• insufficient equipment's,

• low availability of emptycontainers in some ports.

Complex and inconsistentcustoms clearance


Logistics Performance Index

Though GCC States set ambitious targets to improve global ranking

on LPI index, only UAE & Oman ranking improved modestly in 2018

GCC Position in Global Logistics Performance Index (LPI)

(2016 and 2018)

Source: World Bank, 2019

Note: Lower rank indicates higher position globally

Country 2018 Rank 2016 Rank Change 2018 vs 2016

UAE 11th 13th +2

Qatar 30th 30th No change

Oman 43rd 48th +5

Saudi Arabia 55th 52nd -3

Bahrain 59th 44th -15

Kuwait 63rd 53rd -10

Collaboration for Growth: A Cultural Transformation

Outlook• Continued strong growth in petrochemicals demand expected, driven by:

• Global middle class will grow markedly – demand for chemicals will rise 70% over the next 15 years

• Longest supply chain for GCC producers makes the industry less competitive. Need to move beyond Efficient-focused to Value-driven focused.

• IMO will enforce a 0.5% sulphur cap on bunker fuel content from 1 January 2020, a drop from current 3.5 wt.% limit to < 0.5 wt.%. Freight rates could rise by ca. 10%.

• Crude-to-Chemicals is a Game Changer. COCT will change trade pattern for some key commodities.

• “Close to Feedstock vs. Close to Markets”?

• Disruptive technologies will shape the future of the SC Industry ..

• Technology & Innovation remain the only long-term sustainable growth option

• Challenges will be addressed and New Opportunities for the GCC will be unfold

<0.5 wt%

sulfur

clean fuel oil

>70 %

conversion

COTC



• Key conference

highlights



Agenda


11th GPCA Supply Chain Conference in numbers

ATTENDEES COUNTRIES COMPANIES SESSIONS SPEAKERS ACADEMIA

307 13 125 6 28 28


GPCA Supply Chain Conference – attendance trend

339

279264

307

2016 2017 2018 2019

16%


Workshop on Sustainability in Supply Chains

• Attended by 150+ participants

Jan GardeitchikPort of Rotterdam

Abhishek ShahRSA Global

Yousef I. Al DossarySABIC

Ralf SchreiberDHL Global Forwarding


New for this year: Masterclasses

Topics covered:

• Enhancing

procurement 4.0

• Supply chains of

the future

• Meeting the needs

for a new supply

chain in the GCC

• Boosting supply

chains through

artificial intelligence

Adel NuseibehEQUATE

Bernd SchreiberArthur D. Little

Jürgen SchulzSiemens Digital Logistics

Ralf SchulzeCamelot Management

Consultants

Fahmi Al-ShawwaImmensa Technology Labs

Georg OdelgaMAN Truck and Bus Middle

East FZ

Yaser Al ShahraniSadara

Dr. Wolfgang

HoppmannSchmidt ME Logistics

Mark AppleyardRSA Talke


3rd GPCA Supply Chain Excellence Awards


Leaders of Tomorrow – 11th edition

28Students

10 5 4 4 2 2

Saleh Al-Shabnan

CEO, City Cement

Company

Ahmed Alkatheeri

SVP Supply Chain,

Borouge

Saleh Al-Suwaiti

General Manager,

Procurement Center of

Excellence, Tasnee


Special thanks to RSA Talke for hosting a visit to their facilities in Dubai for both delegates and students



• Key conference

highlights



Agenda


Speakers

Ahmed Al ShamsiBorouge

Fayez Al MalkiSABIC

Abdulaziz

Mohammed

AlmohawesSaudi Customs

Abdulla Bin

DamithanDP World UAE Region

Arun BruceBCG

Manuel DiasAspenTech

Richard MorganMaersk

Adam LalaniTristar

Mona Ahmed

BalalaaADNOC

Fuad Mohammed

MosaSABIC

Ali A. Al-OmeirMODON

Zainab Al BlookiADNOC

Methab GelaniIBM Global Business

Services

Nikita AndreevAdvisory Group

Omar SalehMicrosoft MEA


Awards Jury

Kim WinterFounder and Global CEO,

Logistics Executive

Andreas ZinkDirector,

LKW Walters

David DemersFounder,

Avicon Inc

Saleh

Al ShabnanCEO, City Cement

Company


Moderators

Kim WinterFounder and Global CEO,

Logistics Executive

Udit AroraHead of Committees

Affairs, GPCA

Elan HabibHead of Strategic

Research, GPCA

Awards Master of Ceremony


Sponsors and exhibitors


GPCA Supply Chain Committee


GPCA team

• Highlights of GCC SC

Landscape

• Key conference highlights


• Upcoming GPCA

events

Agenda


2019 GPCA events


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closing remarks - gpca supply chain conference€¦ · • key trends in gcc industry’s landscape...

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